The good news is that U.S. ad economy expanded 6.5% in 2010. The bad news is that some major media - especially print media like newspapers and magazines - are still substantially below pre-recession ad spending levels of two years ago. That is the yin/yang perspective of one of the ad industry's leading economists - Kantar Media North American Senior Vice President-Research Jon Swallen, after analyzing the data the WPP unit compiled for the ad-supported media it measures. Swallen dubbed the overall ad expansion a "feel good headline," but suggested that some serious, systemic issues remain with demand for some major media, which he said have lost as much as one-fifth of their total volume over the past two years. Generally speaking, he was referring to print, especially locally focused print media like newspapers, which have seen an ongoing exodus of advertising budgets following the migration of consumer usage to digital alternatives. The recession only seems to have exacerbated that trend, and print is the only major medium that is not benefiting directly from the recovery. In fact, Swallen noted that local newspaper ad spending has declined for "21 consecutive quarters." And the downward demand isn't just affecting the volume of local newspaper advertising, but its value as well. Swallen noted that while there was actually a "small uptick" if the volume of local newspaper space sold last year, total ad dollars fell 4.6%, meaning advertisers paid a lower price on average to place ads in local newspapers. While national newspaper ad spending rose a modest 2.7%, Swallen said that was due primarily to category expansion - primarily additional editions published by News Corp.'s The Wall Street Journal, a publishing company that also is hedging its bets by pushing hard to get into the "tablet" publishing marketplace with The Daily. Consumer magazines were the next least vital ad medium. While they expanded a modest 3.3% during 2010, their overall ad revenues are still below 2008 levels. The media that have benefited most from the economic expansion has been television and the Internet, Swallen said. Some of it was due to cyclical spending patterns among key categories, like the 24.2% surge in spot TV advertising that was attributed largely to biennial political advertising spending. But key categories, especially telecommunications, consumer packaged goods, and a revitalized automotive industry, have been upping their TV ad budgets as well. Swallen said that financial services advertising has also rebounded from its recessionary pullback, including debt-related categories such as credit cards and consumer loans, and that only two of the top 10 overall ad categories - direct response and pharmaceutical - experienced a contraction in 2010. Interestingly, most of the grown in the U.S. ad expansion did not come from the nation's leading advertisers, but from mid-size and so-called "long-tail" advertisers. While the overall marketplace expanded 6.5%, the top 10 advertisers boosted their spending only 3.7%. The top 100 advertisers expanded 8.8% and long-tail advertisers outside the top 100 expanded their spending 7.0%. Historically, Swallen says long-tail advertisers are an important indicator to keep an eye on in terms of underlying economic vitality, because they tend to be closer-to-the-vest and more susceptible to economic volatility than big advertisers. Percent Change in Measured Ad Spending1 MEDIA SECTOR · Media Type (Listed in rank order of 2010 spending)Full Year2010 vs. 2009TELEVISION MEDIA10.3% · Network TV 5.3% · Cable TV2 9.8% · Spot TV3 24.2% · Spanish Language TV4 10.7% · Syndication – National -2.8% MAGAZINE MEDIA52.9% · Consumer Magazines 3.3% · B-to-B Magazines -1.2% · Sunday Magazines 4.6% · Local Magazines 0.9% · Spanish Language Magazines 5.5% NEWSPAPER MEDIA6-3.5% · Local Newspapers -4.6% · National Newspapers 2.7% · Spanish Language Newspapers 2.0% INTERNET (display ads only) 7 9.9%RADIO MEDIA7.6% · Local Radio 4.9% · National Spot Radio 18.6% · Network Radio 2.2% OUTDOOR9.6%FSIs85.4%TOTAL6.5% Source: Kantar Media1. Figures tabulated from Kantar Media’s Stradegy™ application and cover all measured media, including: Network TV (6 networks); Spot TV (125 DMAs); Cable TV (67 English language networks); Syndication TV; Spanish Language TV (4 Hispanic broadcast networks; 4 Hispanic cable networks; 71 Hispanic local TV stations); Consumer Magazines (226 publications);Sunday Magazines (87 publications); Local Magazines (27 publications); Hispanic Magazines (14 publications); Business-to-Business Magazines (277 publications); Local Newspapers (147 publications); National Newspapers (3 publications); Hispanic Newspapers (48 publications); Network Radio (5 networks); National Spot Radio (205 markets); Local Radio (32 markets); Internet (1,883 sites); and Outdoor. Figures do not include public service announcements (PSA) or House ads.
High numbers were gained for the official first big day of the NCAA Men's Basketball Tournament. CBS Sports and Turner Sports say their multinetwork airing of Thursday's second-round coverage, which featured many big-name teams, posted ratings 24% higher than a year ago -- the best numbers in two decades. The combined viewership of CBS, TBS, TNT and truTV coverage of games pulled in a Nielsen preliminary 5.7 household rating/13 share, the highest results since 1991. CBS, TBS, TNT and truTV averaged 7.4 million total viewers, up 16% over CBS Sports' 2010 viewership. This year, the entire second round of games was aired -- due to the new CBS Sports/Turner Sports agreement where all games will be complete on either the CBS broadcast network or one of Turner's three cable networks. In looking at four specific dayparts, the tournament grabbed better ratings than numbers obtained a year ago. For the first telecast window of the day -- 12:00 noon to 4:15 p.m. -- the combined number of games pulled in a 4.4 household rating/15 share, up 42% higher than the 3.1/10 last year. Later in the afternoon, the second window of the day -- 3:00 to 6:45 p.m. EST -- posted 46% better numbers -- a 5.1/13 versus a 3.5/10 last year, the best daypart growth. Next in prime time, the third telecast window of the day -- 7:00 to 9:45 p.m. -- delivered a 6.5/12, up 8% from a 6.0/11 in 2010. Later that night, the second prime-time games -- 9:15 p.m. to 12:30 a.m. EST -- took in a 6.9/13, a 13% gain from a 6.1/12 last year. The lineup is different this year, given the new tournament format that featured 64 teams. In past years, ESPN aired opening round games before CBS took over with the bigger games on Thursday -- but not all games could be seen completely. Tuesday first-round games posted 1.2 million viewers for its first game -- about 150,000 more than ESPN did a year ago. The Nielsen household rating was the same both years -- a 0.8 number. For the second game on truTV, the numbers were 1.35 million viewers and a 0.9 household rating.
There are more executive changes at NBC Universal's big cable network: USA Network has named network veterans Chris McCumber and Jeff Wachtel as its co-presidents. Both will report to Bonnie Hammer, now chairman, NBC Universal Cable Entertainment and Cable Studios. She previously had the top post at USA Network. Wachtel, who has been the network's most senior programming executive, and McCumber, who has been the network's most senior marketing executive, will jointly oversee strategic direction and operations across all platforms for USA, the top-rated cable network for five consecutive years. McCumber -- who had been executive vice president of marketing, digital and brand strategy since December 2007 -- has led USA's "Characters Welcome" brand push in recent years. He is also in charge of new business development and all WWE programming across the networks. As president of original programming, Wachtel has overseen development of all high-rated original programming for USA. This includes "Burn Notice," "Royal Pains," "White Collar," "Covert Affairs," "Psych," "In Plain Sight", "Law & Order: Criminal Intent," and "Fairly Legal" and the upcoming "A Legal Mind" and "Necessary Roughness." Wachtel remains co-head of original content, Universal Cable Productions. He joined USA in 2001 as executive vice president of series and long-form programming. "USA will remain a top priority for me, and I can't think of a better team to build on the network's incredible momentum," said Hammer. "Not only have Chris and Jeff performed consistently at the top of their games, their collaborative style is a critical part of USA's DNA and a key component of the network's success." Hammer became chairman of NBCU's cable entertainment and cable studios two months ago -- as part of the Comcast Corp. takeover of NBC Universal. She is now responsible for E! Entertainment and G4, as well her existing oversight of USA, Syfy, Chiller, Sleuth, Universal HD and Universal Cable Productions. She took over the top post at USA Network in 2004, after working as president of Syfy since 2001.
Heineken USA's Tecate beer brand, which until now has focused its U.S. marketing on Mexican male immigrants, is expanding its target audience to all male Hispanics for its new 2011 "Celebration" campaign. As part of this broader strategy, Tecate will for the first time test English-language TV spots in select markets, as well as incorporate Tecate Light into its creative. The brand's previous campaign, "Anthem," focused strictly on recognizing the perseverance and character of Mexican male immigrants in the U.S., with a serious tone that portrayed the struggles and hard-working lives of men laboring in blue-collar jobs to support their families. The TV spots and other elements of the "Celebration" campaign continue the "Con Carácter" ("with character") theme, but have a partying theme, focusing on the "gregariousness and festivity" and other key elements of the overall Hispanic culture and Hispanic men. The new TV spots from KBS+P's Ramona, some of which launched in 15-second, Spanish-language versions on major Hispanic television networks this week (30-second versions will begin running in mid-April), humorously portray the "ingenuity, valor and determination" of Hispanic men. One spot shows a group of Hispanic men in a bar (wearing knight armor) standing to welcome a female fellow bar patron, who is clearly a senior citizen, to their table. Messaging: "This Tecate is for ... the ones from the roundtable, who are truly gentlemen." Another shows a group of Hispanic men in a bar vying to be the one who picks up the tab. A third shows an Hispanic male in a blue-and-white striped shirt, relaxing in a chair in his own home as he drinks a Tecate -- and holding up what appear to be two very large eggs (testicular connotations?) -- with the messaging: "This Tecate goes ... for the one in the striped shirt who is a real, real man." The tagline on all of the spots: "Let's celebrate character. Con Carácter." Tecate's decision to expand its consumer marketing approach is far from surprising, given that male Mexican immigrants represent less than 10% of the U.S. Hispanic population, and that most of the growth in the Hispanic market over the next decade will come from second- and third-generation consumers. "The new campaign is consistent in retaining the focus on the character of Hispanic men, but the creative interpretations of that are different -- and this creative is joyous, celebrating that character in humorous ways," sums up Felix Palau, VP, marketing for Tecate, for Marketing Daily. In addition to the television/online videos and online ads on targeted sites, the main Spanish-language campaign includes radio (DJ endorsements on Spanish-language stations nationwide), and out-of-home (including graffiti murals, bus shelters, mobile billboards and wrapped trucks). Reflecting the significantly expanded audience target, the media buy, by MediaVest MV42, is also wider than in the past, encompassing key Hispanic markets including Los Angeles, Dallas, Atlanta, Tampa and New York, with a national overlay. The testing of creative translated into English -- in TV spots on both Hispanic and mainstream networks, radio and out-of-home -- will take place in markets with high concentrations of acculturated Hispanics who are bilingual, such as San Antonio, Palau reports. "We, of course, want to test this carefully, in appropriate markets," he says. "If it's successful, we will expand it in 2012." As for Tecate Light, a 2007 launch that is currently sold only in the Western region of the country and Texas, the brand sees this as becoming a significant driver of its overall portfolio sales in the long term, Palau says. The initial approach is starting to broaden the light version's awareness by building it into the new campaign (shots of Tecate Light on tables in bars and inclusion in the beer toasts at the end of most TV spots, for example). Interestingly, Tecate regular competes mostly with domestic premium light beers in the U.S., according to Palau. Research shows Hispanic males viewing the light version as particularly appropriate for mixed male/female occasions, including family or other parties that may extend for multiple hours, while viewing Tecate regular as the choice for all-male, shorter-duration get-togethers, he reports.
Syndication in the 2010-2011 season has seen much of the same erosion as in previous years. Many shows this season are under their levels of a year ago. But individually, one show stands out: "Two and a Half Men." Getting some extra spin and publicity from various Charlie Sheen scandals -- as well as big interest from FX network -- the show has seen a 17% increase in its overall viewership ratings to an average 9.2 million from 7.8 million. The CBS prime-time show continues to be the second-highest regularly scheduled show in syndication -- next to "Wheel of Fortune." "Wheel" has seen a rare move among syndication shows with its viewership improved -- albeit very slightly -- 1% to 11.45 million from a 11.36 million number of a year ago. The "Wheel" companion game show, "Jeopardy," climbed slightly as well to 9.15 million from 9.13 million. Another CBS Television Distribution show, "The Oprah Winfrey Show" -- in her last season -- was next, also up a bit, 6.76 million from 6.69 million. CBS' "Judge Judy" was next, but down from a year ago to 6.43 million from 6.505 million. One of the bigger losers of the top syndication shows was CBS' magazine "Entertainment Tonight," down 10% to 5.87 million from 6.53 million the year before. Twentieth Television's "Family Guy" had a 7% gain so far this season, 5.69 million from 5.30 million. Warner Bros.' "My Wife and Kids" grew big-time, more than doubling its numbers from a year ago -- now at 4.1 million from 1.4 million. Much of the rise was due to added coverage on Nick at Nite this past season. NBC Universal's "The Office" fell to 3.67 million from a 4.55 million number a year ago, a 19% drop.
Media companies have been touting the resurgence of the auto category and a Wall Street analyst has put an estimate on it: Spending was up 20% in 2010. That accounted for 32% of overall ad growth. Total category spending was $14.8 billion. In 2011 Michael Nathanson of Nomura projects total auto ad spending to be up 6.4% to $15.7 billion, and rise 7% in 2012 to $16.8 billion. Nathanson also says a "bullish" trend continues in national TV and online display advertising, but the 2010 growth rate in auto advertising in local TV might slow this year. Nathanson wrote in a new report that CBS, News Corp. and Disney are positioned to continue to benefit from the surge. Each has a broadcast network as well as a slew of local stations. Perhaps because of ESPN, Nathanson wrote that 12.4% of ad spending at Disney comes from the auto category, the most among seven large media companies. That was above Discovery at 10.7%. After Disney and Discovery, he wrote that News Corp.'s exposure to auto ads is 9.8%, followed by CBS at 9%, Scripps at 8.5%, Time Warner 5.8% and Viacom at 3.6%, with its group of younger-skewing networks. Car sales, of course, helped drive ad spending -- and in 2010, Nathanson writes, there was a notable rebound, but sales were still well below 2007. Last year, advertisers increased average spending per car sold by 8% (to $1,280). This year, car sales are forecast to grow 13%, but dip to a 7% growth rate in 2012.
Disney Channel still racks up big viewership totals among kids and teens. As a sponsorship-driven network, devoid of the usual slate of 30-second commercials, it continues to push a different marketing message to TV advertisers. Of Disney's now core group of kids' networks comprised of Disney Channel, Disney XD, and Disney Junior, Disney Channel and Disney Junior still maintain the model of running selective 15-second sponsorship messages -- commercials that end with a TV marketer noting, more or less: "it is a sponsor of the following program." Disney says no more than two of these messages appear in a given hour. "We will continue the sponsorship model," says Rita Ferro, executive vice president of Disney Media sales and marketing. "It works for us. We have been able to expand our list of advertisers." Some recent sponsors include Best Western, Chrysler, Nissan and Hasbro. These sponsorships are a piece of a broad range of multiplatform media that Disney owns. Even then, Disney is selective. "There are a lot of brands that want to work with us that are not the right fit," Ferro says. A key sell for Disney comes from touting heavy co-viewing in prime time, where a parent -- mostly a mother -- watches with their child. Disney Channel says it is the No. 1 channel for moms watching with kids in prime time. All this has helped Disney expand into new, non-kids endemic categories: automotive, consumer product companies, travel/ hospitality, toys and food. What are the hurdles for Disney with sponsorship? "It's really getting people to understand the value of sponsorship integrations," explains Ferro. "Sometimes, advertisers look at sponsorship and don't think it is as effective as the 30-second spot. When you have categories that only consider the 30-second spot and the cheapest price, sometimes that's a challenge." Although Disney Channel and Disney Junior continue with their sponsorship model, Disney XD -- a channel that targets boys -- is fully ad-supported. Overall, Disney sees the kids' TV market at around $1 billion, says Ferro. The current kids' TV marketplace continues to spike higher with a short-term scatter market, and double-digit-percent CPM viewer increases over the upfront market of a year ago. Ferro believes the full brunt of deal-making for the 2011-2012 upfront market will move in late May/early June. "It has been a very strong scatter marketplace," says Ferro. "There have been big amounts of money from the toy manufacturers, which you don't typically see. This time of year, you typically don't see business as strong. That why we are getting excited." She adds that entertainment advertising business remains strong: video games and a number of kids-targeted theatrical movies. One remaining problem area for the kids' TV network is the food category. "You are seeing many companies reformulate," says Ferro. "A lot of companies have taken to heart the new guidelines. For us, we have seen a lot of milk and bread companies, such as Sara Lee."
Taco Bell's media blitz aimed at countering the bad publicity created by a lawsuit claiming the chain's taco filling doesn't contain enough beef to be advertised as beef seems to be paying off. A week after the suit was filed in mid-January, the QSR responded with full-page ads in national newspapers that grabbed attention with the headline "Thank You for Suing Us," followed by the details on the makeup of its filling. These were combined with a social media campaign and a Facebook-based offer for a free crunchy beef taco to thank the chain's loyal customers. But that campaign reached only about half of the U.S. population, so beginning this month, Taco Bell launched a $3 million television campaign on mainstream and Hispanic networks. Those spots feature real Taco Bell employees driving home the message that the taco filling is 88% USDA-approved beef and 12% water, seasonings and other "signature recipe" ingredients. The employees also suggest that consumers check out the full ingredients breakdown at TacoBell.com. The "Talk" campaign is also being run on radio, and has social media and online keyword buy elements. So how's it going? The tide appears to be shifting back in the fast-food chain's favor, according to tracking data from YouGov's BrandIndex. The scores range from 100 to -100 and are compiled by subtracting negative online/social media feedback from positive feedback. A zero score means equal positive and negative feedback. Taco Bell's "buzz score" among adults (asking whether they've heard anything about the brand in the last two weeks, and if so, whether it was negative or positive) plummeted from 19.1 on Jan. 3 to -10.6 on Feb. 7. However, as of March 15, it's back up to 9.8. The chain's "recommend" or brand loyalty score ("Would you recommend the brand to a friend?") has also rebounded significantly. That score dropped from 19.6 on Jan. 3 to 1.3 on Feb. 8, but was back up to 13.2 as of March 15. Taco Bell's quality perception ("Is it high or low quality?") -- which wasn't so hot even before the lawsuit -- is also climbing back up toward its old levels. That score was at 4.8 on Jan. 3, -10.7 as of Feb. 16, and 2 as of March 15. BrandIndex conducts online interviews with 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of more than 1.5 million. The margin of error is +/- 2%.
Comcast's challenge to unlock the value of non-core or declining assets has been thrown into high gear by The Blackstone Group's move to sell its 50% interest in Universal Orlando or flip full ownership of the theme parks and resort to a third party. This scenario should have played out on General Electric's watch as sole owner of NBC Universal. Anticipation was high following NBC's acquisition of Universal in 2004 that the media company would monetize all of its inherited theme parks. Then is now. Comcast, the country's largest cable operator and the new owner-distributor of NBC Universal's big-time brand content, has no interest in owning theme parks. It wants only the annuity-like revenue stream generated from 20-year licensed use of its brand characters and content franchises, without the capital or operating costs of these non-strategic assets. Blackstone has presented Comcast with the opportunity to rethink its entire investment strategy for the theme parks. Sale proceeds could be used to pay down debt or to expand its cable network and content holdings. Here are some of the particulars: *Comcast has the right of first refusal to buy Blackstone's 50% in Universal Orlando resort properties, which includes Universal Studios Florida, Universal's Islands of adventure and the Wizarding World of Harry Potter theme parks. Barclays analyst James Ratcliffe expects the entity to generate $430 million in earnings in 2011 and estimates its equity value at about $2.6 billion. Comcast NBCU does not currently consolidate its 50% ownership of that entity or the $1.5 billion in related debt on its balance sheet. Whether it buys out Blackstone's interest to convert Universal Orlando into a wholly owned consolidated asset, or sells Universal Orlando outright, the asset monetization would be incrementally positive for Comcast NBCU, Ratcliffe says. * Universal Orlando is distinct from the Universal Theme Parks, which are 100% owned by NBCU and generated about $175 million in earnings last year. If Comcast does not offer to buy out Blackstone's interest in Universal Orlando, the firm will be free to sell its share -- and potentially force a complete sale of the entity -- to a third party. That could conceivably open the door for Comcast NBCU to also unload all of its consolidated theme park assets, collectively valued at about $1.4 billion. An obscure consulting arrangement that Steven Spielberg has with Universal Orlando, dating back to the park's 1987 inception and worth roughly $34 million in annual payments to the famed producer (or 2% of overall revenues), might actually be a catalyst for some creative deal-making. Since the arrangement would be part of any Universal Orlando transaction, Comcast could seek to replace or follow the payment pact with a more productive content-related deal with Spielberg that would be valuable to its studio business. Any form of theme-park monetization will free up funds to reinvest in all forms of content, as well as the cable networks that anchor the newly merged company, generating 80% of overall earnings on just 40% of revenues. The theme parks generate only about 3% of overall revenues and about 5% of earnings for Comcast NBCU, growing only about 3% this year and in 2012 before flattening out to less than 2% annually thereafter, analysts say. Its film operations also generate 5% of earnings, but 24% of revenues. While film operations are cyclical (with revenues forecast to decline 4% this year off of strong 2010 results), it is a significant source of unique content for Comcast NBCU. Rethinking the theme-park business will make it easier for Comcast to address the future of the NBC Television Network, whose ratings and revenue position continues to deteriorate. The NBC TV Network and NBC-owned TV stations generate 10% of earnings on 32% of revenues. A bold move long suggested by this column would be to spin off the NBC TV Network shell and its dependent NBC-owned TV stations to a major broadcast affiliate group, such as Hearst and Gannett, or to a private equity partner. Comcast NBCU would continue to own and distribute its branded news and entertainment content to a variety of outlets, including the NBC-affiliated network and stations. The rationale for action is in the numbers. NBC hasn't recovered from historic ad revenues losses caused by the recession. It continues to wrestle with declining prime-time ratings that will never regain historic highs because of audience diffusion. NBC's overall revenue growth is expected to slide from less than 3% to at least a negative -1% in 2012, analysts say. Compounding the problem: NBC paying $1.2 billion for the 2012 London Olympics, which will generate an estimated $100 million net loss, but provide a solid platform off which to promote Comcast NBCU networks and content. Should the company pursue the 2014 Sochi, Russia games -- paying in the lower $700 million range -- it would, at best, break even. While retrans fees paid by cable operators such as Comcast have been a temporary boom for broadcasters, competing over-the-top TV alternatives and regulatory conditions limiting Comcast's ability to charge for NBC programming will minimize that revenue source in the future. Overall, dramatic changes in content access and economics eventually will crush the inefficient broadcast TV network model. Because it is an irreversible drag on the new company's balance sheet, Comcast will likely be the first among its peers to radically alter or abandon the traditional broadcast network TV business model. While Comcast Chairman and CEO Brian Roberts vowed he had no plans to "Comcast-ize" NBC, he is committed to making --- not losing -- money. The company is expected to generate fully tax-free cash flow of $7.2 billion in 2011, with full-year cable earnings nearing $15 billion and its combined content-related earnings topping $3.5 billion, Ratcliffe estimates. Chances are by 2014, when Comcast is set to buy half of GE's remaining 49% stake in the $80 billion company at a net cost of about $7.6 billion in debt, it will seek to better monetize its underperforming or modestly performing assets. The transforming media world will have changed just enough by then to fully justify -- even to regulators -- the radical reform or outright sale of NBC.
Rob Frydlewicz is best known as a veteran agency researcher at agencies such as NWAyer, FCB and Carat. And now he has expanded his skill base to include social media and blogging. Rob is part of a blog network that consists of several media executives who write on a variety of pop culture subjects. Rob writes two blogs: www.HistoryAsYouExperiencedIt.com and www.ZeitGAYst.com. In this interview, Rob talks about his blogging experiences, what he sees as trends in the social media landscape and the future of blogging as a media communications form. The full interview is located here. ) CW: Rob, much has been written recently about the evolution from blogs to social media. Do you see blogging on the wane? RF: No. In fact I think that social media such as Facebook and Twitter complement blogs by driving traffic to a blog's longer-form narrative. And because blogs are open to all potential visitors via search - not just friends, friends of friends or subscribers - it enables us to get our opinions and insights out to a wider audience in a more detailed form. But I also think that for blogs to survive, they need to coalesce around a common theme and create a blog community like we have done here at TheStarryEye.typepad.com/home. Ours is a pop culture community with blogs on television, sports, pets, travel, new age, art, graffiti and pop history. As a group, our blogs benefit from synergies between topics as well as different outside sources of traffic and visitors. Some blogs, like The Arteur art blog, get significant traffic from Google images while others such as New York Sports gets visitors from several Mets-oriented blogs. Together we have built a wide and deep visitor base. CW: Where do you think the future is in blogging? How can you be a successful blogger? RF: Like any avocation or hobby, blogging isn't for everyone - it's a calling. And to be a successful blogger there needs to be more than just interest - it requires dedication & discipline (a good idea and writing proficiency helps as well). Also, you can't be tripped up by concerns over revealing yourself to the world. Like my personal history blog, I think more people will see it as a way to create a cyber-centric time capsule. As with Facebook and Twitter, more people and companies with no inclination to do it themselves will realize the importance of having a blog for their business and hire consultants to write and maintain it for them. As a media researcher, I'm fascinated by blog metrics and measurements and monitor the quality and quantity of my blog often. It's a thrill to see the sources of visitors especially when I see someone from a faraway place like Malaysia or Egypt visiting my blog. And I also get a charge when I see one of my blog posts ranked first or second in a search result. CW: How do you think new technology - i-Pads etc - will impact social media? RF: Enhancements will continue to make it part of everyday life and a portal for gathering information. I'm sure there will be new services to compete with FB & Twitter. Perhaps classes about the ethics of using social media will become part of school curriculums to help future generations learn from our mistakes. CW: You write a GLBT blog. Is the GLBT market its own unique consumer set with specific purchasing behaviors or is it a sub-set of the mainstream culture with similar spending patterns? What makes the GLBT consumer unique? RF: I think we're going to see that as more people "come out,", and as being gay continues to become a regular part of American life, gay people will be more willing to participate in market research surveys. And I think a more representative sample will show that demographically the GLBT population has a lot of similarities to the general population. And despite media coverage making it seem that everyone in the GLBT population wants to raise children, there is still a big pocket of gay men & lesbians who don't and so will continue to have discretionary income for products & services that define the "good life" (e.g. travel, liquor, restaurants, clothing, shopping at high end stores). As far as child-rearing is concerned, it means marketers may need to include gays & lesbians in ads or address their unique needs as same-sex parents. Finally, marketers need to seriously consider adding gay & lesbians to their mix of consumers portrayed in ads. For instance, I was struck by an ad for Sealy mattresses I saw during the Super Bowl (don't know if it was a network ad or local in NYC) that pictured five different couples in bed, and none was a same-sex couple.
CIMM's Set-Top Box Data Lexicon is a compilation of terms and definitions associated with Set-Top Box data and its measurement. This Word-A-Week column highlights a term and definition from the Lexicon to help forge a common language for Set-Top Box data usage and expedite the roll-out of the data for its many industry applications. We could fill up several columns with definitions that apply to the concept of digital media, technology and platforms. Continuing on the digital theme of last week, this week we focus more on the digital transmission platforms that contribute to Set-Top Box data origination. Here are terms and definitions related to digital transmission delivery platforms DTTV abbr Digital Cable CIMM DEFINITION : A generic term for cable television signal that is transmitted via digital encoding over a cable network. (Source: CableLabs) 2 : Cable television that is digitally compressed so as to offer a greater selection of content, and on-screen programming guide, VOD, HD, sharper picture quality and other advanced technological options to the viewer. Delivery of signal is through coaxial cable wired into the building. (Source: PC Mag.com 3 : Network comprised of fiber and/or coaxial cable and used to enable cable TV service and/or two-way high-speed Internet. DTTV abbr Digital Terrestrial TVSee: Digital Cable CIMM DEFINITION : Often considered the same as Digital Cable. It is an advancement in terrestrial analog television which has a land-based signal broadcast. Digital Terrestrial uses less spectrum and offers more capacity and a higher quality picture than analog. It uses aerial broadcasts to a conventional antenna instead of a cable connection or a satellite feed. DTV abbr Digital TVSee also: Digital Cable CIMM DEFINITION : DTV is a more advanced television delivery system (than analog) that offers higher quality signals, high definition and enables the viewer to receive significantly more channel choices and user interface software such as a DVR and VOD. Unlike analog, digital signal are compressed, expanding the number of channels four or five fold and enabling internet connectivity. Digital SatelliteSee also: Digital Cable CIMM DEFINITION : Offering similar advanced television features as digital cable TV. Unlike digital cable, delivery of signal is through a satellite dish. 2 : Information transmitted in discrete pulses rather than as continuous signals. Data is represented by a specific sequence of off-on electrical pulses. (Source: Nielsen) Please refer to the CIMM Lexicon online at for additional information on these and other terms.
How do you market an original TV show when you don't have a place to run promos? When your customers aren't sure where to look for new shows? When you don't really have a "network"? Someone at Netflix must be asking these questions. Maybe someone else there has the answers. Maybe someone else is just winking at it all. Media executives believe Netflix is looking to break new ground when it comes to buying "House of Cards," a prestige TV drama that would have gone to HBO or AMC had it not gone to Netflix. Netflix has been on a big winning streak lately, as yet not making one false step in its rise. You don't think so? Have you seen its stock price lately? The chief problem for any original TV/video content -- on any platform -- is finding large swatches of viewers. Niche audiences are always around. Marketers can always find them, for say a short branded entertainment series, and declare success. But when you spend broadcast-network-like dollars -- $100 million on a series for two years -- it's a whole different equation. You are not talking about eight 5-minute webisodes sponsored by Denny's, Dove or BMW. This is big money -- and in that light, you need big marketing ideas that attract big audiences. Netflix might tell you that what it is doing it is not the broadcast network model -- and not even the HBO model. Getting people to watch a TV show today, next week, or next month? It doesn't matter -- as long as they watch some time. The streaming business isn't about lead-ins and lead-outs or whether or not you win the night among 18-49 viewers. Who cares about that when your 20 million customers are still spending $8, $10 or $12 a month? That's all you need to know. Still, Netflix might want to take a lesson or two from HBO and how it markets. "True Blood" got some big push from its vampire-ish content appeal and from the Internet world -- Facebook, Twitter, etc. -- which are increasingly influential for TV marketers. But so too is big positive press and TV critic coverage -- kind of like what Miramax used to do, and The Weinstein Company continues, for its initially small-targeted independent-feel movies. That said, HBO yields a high-profile patina, attracting the high-educated, upscale and light TV viewer that many TV marketers love to access. Netflix has a broader range of customers, however, and an image as a low-rent video supplier. (Just look at the deals it has made for older movie/TV content.) No matter. Give Netflix some props for kicking it up a notch, keeping traditional TV networks and services on their toes. But now it's got another job -- keeping its brand and appeal on pace with high-profile, expensive-looking content. That is, unless, all this is a ruse. Some have speculated Netflix is just using this as a negotiating ploy in an effort to cut down possible rights fee increases on several expiring deals with the studios. That would be a different brand transformation.
Some of the OTT "over the top" providers politicize their mission by directly attacking the cable and broadcast industries, supposedly on behalf of abused consumers. Searching to find truth in these statements I took it upon myself this past year to install several OTT boxes. I wanted to figure out for myself how real this OTT threat is to the TV industry. It should be no surprise to anyone that TV manufacturers have increased the amount of HDMI ports on new HDTV sets. Today, via an expanded HDMI hub, I have nine set top boxes connected to my 55" Samsung Internet-enabled TV. Part of the process I went through with my project was to create a master list of all the programs I usually watch. I entered approximately 60 TV shows into the DVR scheduler(s) and also all the playlists of services like Netflix and Hulu. What I discovered is that the most important feature for me is that I wanted to store and watch as much first-run content as possible, especially the day it is released. For the most part I built this first run library by employing three DVRs from the array of boxes. As a "work around," I used the Sezmi and TiVo boxes to record the broadcast content from over the air. The Comcast box was used to record cable content and watch VOD. My Samsung Internet-enabled TV -- after Roku, Boxee, Apple TV, and Google TV were found redundant to my TV's apps -- filled in the cracks with Netflix, Blockbuster, and Hulu. When reviewing all my playlists the majority of my content was already available through a patchwork of OTT boxes; although subscription costs varied based on how close to the first availability I wanted to watch the content. Some of the popular shows like "American Idol," however, weren't available as first run on any of the OTT services. As you know program content, like "Access Hollywood, is typically licensed exclusively for local markets; or content could be licensed to a major network prior to being moved to ancillary distribution channels (like overseas or DVD). Every so often the agreements are juggled based on viewership trends. With the introduction of TV Everywhere a few battles are starting to brew between local and national content rights. I don't think OTTs are a "game changer", but rather they are just a lower-tiered addition to the existing licensing ecosystem. Today content owners have variable pricing agreements (for new releases and old catalogs), which are already in place across many forms of distribution. Cable and satellite are rolling out mobile and tablet apps are that fusing the traditional pipes and the Internet which will allow, in my opinion, consumers to eventually customize their subscription packages. When you strip away all the hyperbole regarding OTTs' long-tail appeal, and social media features, the OTTs will only survive if they can gain enough subscribers to secure the first run content that people actually want to watch; long tail and second run content selections are no longer product differentiators. OTTs (including Hulu) might slightly influence a la carte pricing, however, TV Everywhere will probably have a much bigger impact on the tightening of the various pricing models. Without access to an unlimited supply of desirable content, OTTs have no long-term value. These "dead" boxes just take up an HDMI port and stay plugged in while the consumer waits to see if these companies can deliver on their promises of first run content. In addition, without content an OTT's social media features are worthless. In order to survive for the long term OTTs should start rolling out boxes that will let consumers tap into the premium content available from the over the air signals. Logic would dictate that as mobile DTV efforts hit their stride local broadcasters are going to keep going further in implementing this hybrid approach. Broadcasters are such an obvious source of cross platform content that I am dumbfounded (that in strong digital signal markets) it has not already become part of the strategy for OTTs. I predict TiVo and Sezmi, especially while they still hold on to their lead(s), will some day partner with broadcasters for consumer box distribution. With hybrid mobile and tablet apps -- those that straddle the traditional and Internet pipes -- starting to become commonplace consumers one day will not care whether video comes from cable, the Internet, or even an antenna. All consumers will care about is that they can find what they want to watch, that they can afford it, and that they can eventually interact with it. After test driving all these boxes, it is clear to me that first-run video content --- not Internet disruption -- is what is really going to be driving tech's growth engine for the next few years.
Here's what one media executive said about the decision of A&E's History not to air the miniseries "The Kennedys" : "They say 'it is not a fit for the History brand.' But somehow 'Ice Road Truckers' and 'Pawn Stars' are? Give me a break." For History, there would seem to be accuracy issues here, especially in light of the channel's name. But that's not really the complete story. From the point of view of some media buyers, it would seem the overall subject matter of "The Kennedys" is much closer to the network's original brand theme than modern-day big rigs slipping and sliding on roads in Alaska and the northwest regions of North America. Surely we all know there many versions of historical events. The subjects of "The Kennedys" have had scores of conflicting stories told about them. History (the channel) has every right to dismiss this movie for a number of reasons. Still, TV viewers are savvy that Hollywood movies and content based on real lives can be played fast and loose. So why the controversy over this particular topic? I haven't seen the movie. If there are legal disputes, if someone's credibility or station in life has been maligned and hurt, that person should have his or her day in court. Maybe legal documents are forthcoming. "The Social Network," running in movie theaters recently, did have the real-life Mark Zuckerberg of Facebook shaking his head, noting, calmly, that there are many inaccuracies. That said, Zuckerberg didn't go beyond that. He shrugged it off, took it as a Hollywood version of his public self, and even allowed himself to be part of the reality/fictional fun bit of entertainment by showing up during a "Saturday Night Live" episode. Whatever problems History had with the producers' ultimate product, it did accept how TV content can now be structured. Its statement concerning "The Kennedys" included this: "We recognize historical fiction is an important medium for storytelling..." Once History said "no" to the show, ReelzChannel moved in, grabbing the rights for the movie. But now those executives say many advertisers are not buying the event -- they've sold only 20% of its inventory so far. When History had the rights and was planning to air the miniseries, media buying executives said the network did strike a number deals with marketers but that there was no content problem or other concern. "We were considering buying it, and they told us they had advertisers," one media buyer told TV Watch, adding there never was a concern over the show's content. All this is backed up by what an A&E representative told The Hollywood Reporter, that in fact there were no advertiser issues concerning the show. But the rep added that "the content was not considered historically accurate enough for the network's rigorous standards." In the old days racy language and sexy visuals would get you into trouble. Before that, interpretation and accuracy issues could give someone pause. Now it seems admittedly fictional accounts of historical figures can be a concern.